Faxed,
I remember meeting you in ATL as well. One good thing that came out of this mess is the good friendships I made along the way with many people who realized what was going on, let common sense take hold and called out Jerry for what he was. I also made some great contacts on iHub; contacts I should have listened to earlier but whose advice and counsel I treasure now. I remember asking Jerry about options in ATL. He looked at me with a blank stare and told me to NEVER trade them. I now know he knew nothing about trading so his answer/demeanor makes sense. The irony is that I only trade options now.
If you will indulge me, here is my opinion on wat happened once the SEC came calling and Jerry realized the jig was up. Once the SEC began poking around, Jerry and his lawyers probably realized that he was going to get nailed, and nailed hard. I think Jerry sold all of his LT's down the river. I don't know who they were or how many they were but for the sake of argument let us call them LT X, LT Y, and LT Z. Jerry gives all the info to these guys which logically leads the SEC to call up these henchmen and ask them questions. Realizing that Jerry has sold them down the river, LT's X, Y and Z decide it is their best interest to try and cut a deal and sell Jerry and as many people down the river as they can. This is why I think a lot of us who knew nothing of what was going on were contacted by the SEC. Take me for example; when the SEC contacted me, I called them back and set up an appointment. They asked me a lot of questions especially about my trading in regards to the FLD's. I offered up my trading records showing I took a large loss, I gave them specific dates and times when I bought and finally sold CDIV, EIGH (well not EIGH, I still own this worthless crap) and GRNO (all for losses). It appeared that once they realized that I lost money and wasn't involded, they thanked me for my time and that was the last I heard from them. I think they realized that LT's X, Y and Z had tried to cut a deal and sell others down the river. My guess is that it won't go so well for LT's X, Y and Z but until the SEC nails them, this is all speculation. Something tells me the SEC doesn't like being lied to...
So wy would the LT's try and sell me out. Admitedly, I had grown somewhat close to Jerry. He plied me with the pilot and military commonality. I think some folks thought that because of that I knew things or he had let me in on the secret. My guess is that my name was dropped by LT's X, Y or Z and this is why I got the call from the SEC. This is all public record, check my posting history. I was chummy with Jerry. I guess the good thing is I have NOTHING to hide and the SEC can check all my records - I lost a good chunk and was NEVER in on the scheme that Jerry propogated. I suspect that LT's X, Y and Z were and that the SEC knows this. I'm not sure if they will ever get in trouble but I think there is a good chance they will. The SEC may take a long time to act but they do act and if I was LT's X, Y or Z, I'd get a good lawyer and make sure I buried some cash in a box.
This whole scam was terrible. It tore families apart, destroyed life savings and who knows what else. This should be a case study and required reading for anyone who decides to play in the pink sheet market. If I ran iHub, I would put the complaint front and center and make it a point to make sure all noobs read it. Jerry got nailed but there are a thousand like him. I hope the SEC nails them all.
AI
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